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Re: Stallion4life38 post# 117001

Saturday, 09/14/2019 1:04:20 AM

Saturday, September 14, 2019 1:04:20 AM

Post# of 186021
3's will come fast then Sling Shot to .083 and .33


GermanCol Tuesday, 08/20/19 03:49:19 PM
Re: Engines post# 110792 0
Post #
110902
of 117001
After your post I also calculated the share price based on profit, even though for start up companies and businesses as VRUS, when most of them don´t have profits, but only losses, you can not calculate it that way because you would obtain a negative number. So the way to calculate it is based on Revenue.

But the good news for VRUS is that it is already operationally profitable and will continue to be, so I calculated it also based on profit and the results are even better.

25 multiplier is applicable to large well established companies where triple digit growth rates are never expected, I would say almost impossible, so I'll use that as the minimum multiplier because that would assume VRUS is not expecting any growth. I will use 100 as maximum, even though companies just starting to be profitable can have 1000 or higher multipliers, it all depends on the expected growth, reliable management and history.

Also the $500K profit per quarter that you mention is not accurate. If you take the $38M (worst case scenario with only filled backlog income) and apply a 20% margin, you obtain 7.6M profit. I used 20% margin which I think is also conservative, because the company already mentioned in the corporate presentation that net margin for Q4 2019 will be 12% based on a Quarterly Revenue of $4.6M, which annualized would be $18.4M. So with economies of scale and selecting from the higher margin products as the company is continually doing, margin will be in the 20% range with the revenue growing from annualized $18.4M to $38M.

With this calculation our share price is even better as I mentioned above, it should be between 0.083 and 0.33 by now. The calculation is as follows :

- With a multiplier of 25, our market cap should be at $190M ($7.6M Profit x 25). Then, dividing this amount by 2,290,449,898 Outstanding Shares, we obtain 0.083.

- With a multiplier of 100, our market cap should be at $760M ($7.6M Profit x 100). Then, dividing this by 2,290,449,898 outstanding shares we obtain 0.33.

How could I forgot calculating it also this way to see if the result would be better? Thank you for bringing that profit calculation, you are a genius and a great asset for this board.